ISLAMABAD: The Ministry of Finance informed the National Assembly’s Standing Committee on Finance and Revenue on Thursday that armed forces personnel will be granted a special relief allowance in the upcoming fiscal year.
Officers are to receive 50 percent of their basic salary as allowance, while junior commissioned officers (JCOs) and soldiers will get 20 percent.
However, the ministry did not disclose the exact financial impact of these allowances during the session.
Budget Adjustments and Economic Outlook
Finance Secretary Imdadullah Bosal revealed that the public sector development programme (PSDP) for the current year has been revised down from Rs1.1 trillion to Rs967 billion.
Only Rs662 billion has been spent so far, raising concerns among lawmakers that further reductions could affect growth estimates and other economic indicators.
Finance Minister Muhammad Aurangzeb expressed optimism that the central bank’s policy rate would drop to single digits by the end of this year, citing improved inflation and fiscal accounts.
He also confirmed Pakistan expects approximately $1 billion in foreign inflows before the fiscal year closes, supported by guarantees from the Asian Development Bank, which will help bolster foreign exchange reserves.
Revenue, Levies, and Development Funding
The petroleum development levy (PDL) will see an increase, with diesel and petrol levies set to rise by Rs2.5 per litre due to a new carbon levy, pushing average rates to Rs80 per litre.
BISP allocations will increase by 21 percent to Rs716 billion, while grants for Azad Kashmir, Gilgit-Baltistan, and merged tribal districts have also been raised.
Concerns over tax-to-GDP ratio, revenue shortfalls, taxes on solar panels, and structural reforms were also raised during the session.
